Vina Concha Debt
| CONCHATORO | CLP 1,073 0.90 0.08% |
Vina Concha To has over 223.84 Billion in debt which may indicate that it relies heavily on debt financing. . Vina Concha's financial risk is the risk to Vina Concha stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Vina Concha's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Vina Concha's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Vina Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Vina Concha's stakeholders.
For most companies, including Vina Concha, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Vina Concha To, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Vina Concha's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Vina Concha's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Vina Concha is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Vina Concha to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Vina Concha is said to be less leveraged. If creditors hold a majority of Vina Concha's assets, the Company is said to be highly leveraged.
Vina |
Vina Concha To Debt to Cash Allocation
Vina Concha To has accumulated 223.84 B in total debt with debt to equity ratio (D/E) of 51.1, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Vina Concha To has a current ratio of 1.83, which is within standard range for the sector. Debt can assist Vina Concha until it has trouble settling it off, either with new capital or with free cash flow. So, Vina Concha's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Vina Concha To sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Vina to invest in growth at high rates of return. When we think about Vina Concha's use of debt, we should always consider it together with cash and equity.Vina Concha Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Vina Concha's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Vina Concha, which in turn will lower the firm's financial flexibility.Vina Concha Corporate Bonds Issued
Understaning Vina Concha Use of Financial Leverage
Vina Concha's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Vina Concha's current equity. If creditors own a majority of Vina Concha's assets, the company is considered highly leveraged. Understanding the composition and structure of Vina Concha's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Via Concha y Toro S.A., together with its subsidiaries, produces and distributes wines in Chile. Via Concha y Toro S.A. was founded in 1883 and is headquartered in Las Condes, Chile. Via Concha operates under Beverages - Wineries Distilleries classification in Exotistan and is traded on Commodity Exchange. It employs 3209 people. Please read more on our technical analysis page.
Pair Trading with Vina Concha
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Vina Concha position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vina Concha will appreciate offsetting losses from the drop in the long position's value.Moving together with Vina Stock
Moving against Vina Stock
| 0.48 | AFPCAPITAL | AFP Capital SA | PairCorr |
The ability to find closely correlated positions to Vina Concha could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vina Concha when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vina Concha - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vina Concha To to buy it.
The correlation of Vina Concha is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vina Concha moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vina Concha To moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Vina Concha can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Vina Stock Analysis
When running Vina Concha's price analysis, check to measure Vina Concha's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vina Concha is operating at the current time. Most of Vina Concha's value examination focuses on studying past and present price action to predict the probability of Vina Concha's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vina Concha's price. Additionally, you may evaluate how the addition of Vina Concha to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.